Abivax Stock Jumps as Underwriters Exercise Full Greenshoe Option, Raising Total Offering to $920M

Abivax ABVX rallied almost 6% today, closing at €124.5 on Euronext Paris. The jump came after the company announced that underwriters fully exercised their option to buy an extra 960,000 American Depositary Shares, inflating the total capital raise to a hefty $920 million (€807 million).

Initially, Abivax set out to sell 6.4 million ADSs priced at $125 each, upsizing from an originally planned $600 million offering on July 1, 2026. The greenshoe option now accounts for an additional 15% of the original shares sold.

This full greenshoe exercise reflects strong confidence from institutional players, especially considering the offering was already heavily oversubscribed. Before factoring in the extra ADSs, proceeds from the raise were expected to fund Abivax's operations through the second quarter of 2029, supporting doses of obefazimod commercialization and ongoing clinical trials.

With the greenshoe sums, the company's financial footing has become even sturdier. Adding to the positive vibes, Jefferies bumped its rating on Abivax from Hold to Buy, lifting its price target from $108 to $158 per share.

It's worth noting that today's gains are largely specific to Abivax; the broader market was fairly flat with the CAC 40 inching up just 0.07% and U.S. indexes dragging modestly lower. This points to company-specific news driving the surge rather than any macroeconomic catalysts.

The share price at $125 per ADS aligns with the average volume-weighted price on Euronext across the prior three sessions, plus a small premium, which helped set investor expectations around current valuations.

Considering the company plans to file a New Drug Application for obefazimod with the FDA in Q4 2026, today's capital boost fuels its path forward. Moreover, rumors are swirling about potential acquisition interest prior to any commercial launch, which might be adding fuel to the fire in terms of market enthusiasm.

With institutional backing validated by the greenshoe exercise, Abivax appears to be rewriting its script from a clinical-stage hopeful to a firm with solid financial firepower preparing for bigger moves.